Concerns are mounting for 152-year-old British brewing stalwart Adnams plc (AQSE:ADB).
The Aquis-listed, Suffolk-based brewer of popular scoops Ghost Ship and Broadside has confirmed a report from Sky News that it is scrambling to secure fresh private funding for the business.
“Following media speculation, the board of directors of Adnams plc (AQSE:ADB) wishes to clarify that the company has instructed advisors to explore a range of options to fund the company's future growth plans,” the group announced.
“As a business of more than 150 years, and ever mindful of the challenges faced by the hospitality and brewing industries in recent times, the company is continually proactive in seeking ways to ensure that the business is even more resilient for the years to come.”
Adnams’ latest results underscored the challenges faced by the booze industry as a whole.
Interim reports published for the six months ending 30 June 2023 showed a 0.28% fall in revenues and a 200% year-on-year increase in losses before tax to £3.13 million.
The company had £17.4 million of liabilities due within the year.
AIM shrugs of macro pressures
“The UK economic situation remained challenging in the first six months of the year with inflationary pressures continuing to persist and interest rates remaining stubbornly high,” said chairman Jonathan Adnams at the time.
Aquis-listed Adnams shares dropped 22% lower throughout the week.
On the flip side of the challenger market, Coinsilium Group Ltd (AQSE:COIN, OTCQB:CINGF)’s Aquis-listed shares flew 77% higher as the Web3 advisor, venture builder and investor continued to benefit from renewed bullishness in the cryptocurrency markets.
The macroeconomic calendar was a game of two latter-week halves, so to speak.
Thursday’s preliminary gross domestic product (GDP) print showed a 0.3% contraction in the fourth quarter of 2023 following a 0.1% fall in the previous quarter, putting the UK into a technical recession.
Perhaps only a shallow one though; data released on Friday showed retail sales in January increased 3.4% month on month, smashing the 1.5% forecast thanks to a stellar performance in the supermarket sector.
The markets completely shrugged off the “arbitrary and not greatly informative” technical recession announcement, as NIESR Economist Paula Bejarano Carbo called it, with the AIM All-Share Index adding 1.1% to 755 come Friday.
More risers and fallers
Sondel continued its Elon Musk Neuralink rally.
Late last week, a Daily Mail feature quoting “a source with knowledge of the matter” revealed that the fabless chipmaker played a key part in developing Tesla boss Elon Musk’s brain–computer interface Neuralink.
Shares duly rallied 160% when that rumour began circulating. They added another 21% this week.
Small-cap investment group Tekcapital PLC (LSE:TEK) basked in the successes of its portfolio companies.
Fresh off the AIM debut of MicroSalt PLC (AIM:SALT) (of which Tekcapital holds a 77% interest) on the first of the month, its stake in the low-sodium crisps purveyor added over 80% in value this week alone.
MicroSalt’s rally was on the back of the announcement of an export collaboration with American Trading International, which MicroSalt hopes will open the doors to 80 global markets.
Meanwhile, medical devices developer Belluscura, of which Tekcapital has a small 7.7% stake, surged 24% following the implementation of a distribution agreement with Sunset Healthcare Solutions, the Chicago-based manufacturer and distributor of Home Medical Equipment.
Thanks to a strong showing from both portfolio groups, Tekcapital shares added over 50% to 16.75p.
Audioboom Group PLC (AIM:BOOM) shares tuned in 10% higher on Friday morning, bringing weekly gains to 12%, after the podcast distributor hailed record audience reach in January.
Over 38.6 million unique listeners worldwide downloaded podcasts on Audioboom’s creator network in January, compared to a monthly average of 34.4 million last quarter.
"Listeners continue to flock to podcasting and we are doing an incredible job of growing the Audioboom creator network audience faster than our competitors,” chief executive Stuart Last said.
Biotech risers saw Biome Technologies PLC (AIM:BIOM) up 18%, Poolbeg Pharma PLC (AIM:POLB, OTCQB:POLBF) also up 18% thanks to independent research suggesting a $10bn market for lead asset, and Renalytix AI plc doubling its share price, despite a mid-week slump following underwhelming interim results.
Lastly, in the energy sector, Empyrean Energy PLC (AIM:EME) was on a rip after the oil and gas minor closed a £700,000 placing on Tuesday to existing investors at 0.25p each.
Despite this being a 20% discount to Monday’s closing price, investors pushed the stock nearly 50% higher, perhaps encouraged by chief executive Tom Kelly’s £300,000 commitment to the placing.